Tax Sale Surplus Case Allowed to Proceed Against Michigan County

March 10, 2026, 9:45 PM UTC

A Michigan county must defend a lawsuit over its role in an alleged plan to deprive former homeowners of surplus proceeds after tax sales, although the county’s treasurer is protected by sovereign immunity, the Sixth Circuit ruled Tuesday.

The US Court of Appeals for the Sixth Circuit blamed Wayne County’s “inexplicably contradictory pleading” for bringing the treasurer into the case when the operative complaint only named the county as defendant.

“We reject this procedural gamesmanship that appears to have confused Plaintiffs and the district court, and we restore this lawsuit to its proper form to reinforce basic civil procedure principles ...

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